Bitcoin miners' reserves have steadily increased from July 2 to July 22, reflecting strong accumulation as the price of Bitcoin reached a new all-time high of $122,054 on July 14. The confidence of miners in Bitcoin's upward momentum has led them to hold onto rewards in anticipation of higher prices.
However, after reaching a peak, Bitcoin struggled to maintain its upward trend, and miners began to sell off to take profits. This change created new obstacles for Bitcoin in August.
Factors influencing miner behavior:
- Bitcoin Price: When the price of Bitcoin rises, miners tend to accumulate and hold onto rewards while waiting for higher prices.
- Miners' Reserves: An increase in reserves indicates miners are accumulating, while a decrease in reserves suggests miners are selling to take profits.
- Market Sentiment: Optimistic sentiment about Bitcoin's future price leads miners to hold onto rewards, while pessimistic sentiment causes them to sell.
Impact on the market:
- Selling Pressure: When miners sell to take profits, selling pressure increases, and the price of Bitcoin may drop.
- Accumulation: When miners accumulate Bitcoin, the price may rise due to higher demand than supply.